South Korea Steel Market Size, Share, Trends and Industry Report | 2025-2034

Insight Pro Analytic
Jun 24
6 min read

South Korea Steel Market Outlook

According to the report by Expert Market Research (EMR), the South Korea steel market reached a volume of 50.40 million metric tonnes (MMT) in 2024. Driven by technological innovation, robust industrial demand, and the increasing adoption of sustainable construction practices, the South Korea steel market size is expected to grow at a compound annual growth rate (CAGR) of 1.90% during the forecast period of 2025–2034. The market is projected to attain a volume of 60.84 MMT by 2034.

South Korea is recognised as one of the leading steel producers in the world, home to global steel manufacturing giants and a mature ecosystem of suppliers and end-use industries. The country's steel sector is characterised by high-quality production standards, advanced technologies, and a diversified product range catering to construction, automotive, shipbuilding, and machinery sectors. The gradual shift towards environmentally sustainable practices, including green steel and smart building materials, is further enhancing the competitiveness and relevance of the industry on a global scale.

South Korea Steel Market Size and Share

South Korea steel market, with a volume of 50.40 MMT in 2024, plays a pivotal role in the country’s economy. It is an integral component of several key sectors, including construction, shipbuilding, automotive, and infrastructure. The nation’s steel industry is also closely tied to its export economy, with significant volumes of high-grade steel products shipped across Asia, Europe, and the Americas.

POSCO, Hyundai Steel, and Dongkuk Steel are the dominant players, collectively accounting for a major share of domestic production. The market is segmented into various product categories such as hot-rolled coil, cold-rolled steel, galvanised sheets, rebar, structural steel, and special steel. Flat products hold a significant portion of the market due to their widespread use in automotive and appliance manufacturing, while long products are essential for construction and infrastructure projects.

The internal demand is largely supported by infrastructure development and public housing programs, while exports are bolstered by South Korea’s strategic geographic location and long-standing trade partnerships. The market share of eco-friendly and premium-grade steel products is gradually increasing, in line with global demand for sustainable and high-performance materials.

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South Korea Steel Market Trends

The South Korea steel market is currently witnessing a range of significant trends that are shaping its growth and future direction. Among the most notable is the increasing focus on green construction and smart infrastructure. As urban environments evolve, the use of sustainable building materials is becoming standard. Steel, with its strength, recyclability, and flexibility, is playing a central role in this transformation.

The demand for lightweight and high-strength steel is rising, especially from the automotive and shipbuilding sectors. Automakers are looking to reduce vehicle weight to improve fuel efficiency and lower carbon emissions, thereby increasing reliance on advanced steel grades. Similarly, the shipbuilding industry benefits from high-tensile steel that improves performance and reduces operational costs.

Digitalisation is another trend influencing the steel manufacturing process. The adoption of Industry 4.0 technologies, such as automation, robotics, and predictive maintenance systems, is streamlining operations and enhancing productivity. Smart manufacturing not only ensures consistency and quality but also allows for real-time monitoring and optimisation of production lines.

In addition, the global push for decarbonisation is encouraging investments in green steel production. South Korean companies are exploring hydrogen-based reduction methods and renewable energy integration in steel plants to lower carbon footprints. This trend aligns with national climate goals and strengthens the industry’s appeal to environmentally conscious global buyers.

Drivers of Growth

Several factors are driving the steady growth of the South Korea steel market. One of the most prominent is the rising domestic demand from key downstream industries. The country’s construction sector, supported by government infrastructure spending and private real estate developments, continues to be a primary consumer of steel.

The automotive industry, which is a major pillar of the South Korean economy, heavily depends on steel for body frames, chassis, and components. As electric vehicle (EV) production ramps up, the need for advanced steel solutions that offer both durability and lightweight properties is intensifying.

South Korea’s shipbuilding industry, one of the largest in the world, remains a consistent demand source for steel. The development of high-capacity LNG carriers, container ships, and eco-friendly vessels is boosting the consumption of structural and special steel.

Export demand is another crucial growth driver. South Korea's ability to produce high-grade steel and custom solutions gives it a competitive edge in international markets. Trade agreements with several countries ensure favourable export conditions and sustained overseas demand.

Government policies supporting innovation, environmental protection, and industrial modernisation are also pivotal. Investment incentives, R&D support, and infrastructure development programs help maintain industry competitiveness and attract private investment.

Technology and Advancement

Technological advancement is at the core of South Korea’s steel industry evolution. The implementation of smart manufacturing technologies is improving efficiency, reducing operational costs, and enabling customised production. Big data analytics and artificial intelligence (AI) are being used for process optimisation, quality control, and energy management.

Electric arc furnace (EAF) technology, which allows steel production using scrap metal, is gaining popularity for its lower carbon emissions compared to traditional blast furnace methods. POSCO and Hyundai Steel are investing in upgrading EAF capabilities and integrating renewable energy sources to power steel production.

Research in metallurgical science has enabled the creation of ultra-high-strength steel, corrosion-resistant alloys, and temperature-resistant grades suited for aerospace and heavy machinery applications. The development of these innovative products opens new revenue streams and enhances global competitiveness.

Efforts to produce green steel using hydrogen instead of coking coal are underway. These initiatives are expected to revolutionise steelmaking and place South Korea at the forefront of sustainable industrial innovation.

South Korea Steel Market Segmentation

The market can be divided based on product and genre.

Market Breakup by Product

Long Steel
- Breakup by Type
  - Wire Rod
  - Rebars
  - Merchant Bars
  - Heavy Sections
  - Others
Flat Steel
- Breakup by Type
  - Hot Rolled Wide Strip
  - CR Coil / Strip
  - Plate
  - Color Coated Steel
  - Electrical Steel
  - Others
Forged Steel

Market Breakup by Genre

Carbon Steel
Stainless Steel
Others

Competitive Landscape

Some of the major players explored in the report by Expert Market Research are as follows:

POSCO Holdings
Hyundai Steel
KOSTEEL Co., Ltd.
Hwanyoung Steel Ind. Co., Ltd.
Dongil Ind. Co., Ltd
Korea Iron & Steel Co., Ltd
SeAH Besteel Corporation
SeAH CSS Corp.
KG Steel Co., Ltd.
TCC Steel.co.
Others

Challenges and Opportunities

The South Korea steel market, while robust, faces several challenges. Volatility in raw material prices, such as iron ore and coking coal, can affect production costs and margins. Geopolitical tensions and trade disputes pose risks to exports and supply chain stability.

Environmental regulations are becoming stricter, requiring costly upgrades in facilities and shifts towards cleaner technologies. The transition to green steel, while promising, entails significant investment and technical uncertainty.

The global oversupply of steel, especially from emerging producers, intensifies price competition and affects profitability. Domestic demand fluctuations, driven by economic cycles and demographic changes, can also impact growth.

Despite these challenges, the South Korea steel market offers substantial opportunities. The transition to net-zero emissions opens doors for green steel products and environmentally friendly construction materials. Collaboration with technology companies and research institutions can accelerate innovation and commercialisation of next-generation steel products.

Emerging demand from renewable energy infrastructure, including wind turbines and solar panel frames, presents new avenues for growth. The development of high-rise buildings, smart cities, and modular construction methods creates additional demand for high-performance steel.

South Korea Steel Market Forecast

The South Korea steel market is expected to grow at a CAGR of 1.90% from 2025 to 2034, reaching a volume of 60.84 MMT by 2034. This growth will be driven by continued industrial demand, expanding export markets, and the evolution of construction and transportation sectors.

Ongoing investments in smart manufacturing, sustainability, and advanced product development will help maintain the industry’s competitive edge. The government’s push for a green economy and infrastructure modernisation will further support steel demand across sectors.

Steelmakers are expected to focus on value-added products, digital transformation, and partnerships to capitalise on emerging trends. Strategic alignment with global sustainability goals will be crucial in ensuring long-term growth and relevance.